The Pakistan Credit Rating Agency Limited
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Muhammad Atif Chaudhry

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PACRA withdraws the Rating of K-Electric | PPSTS-6 | PKR 5bln | Apr-22

Issuer K-Electric Limited
Instrument PPSTS-6
Amount PKR 5000 mln
Issuance Date 27-Apr-22
Tenor 0.5 Years
Redemption Date 27-Oct-22
Outstanding Amount -

Rating Type Debt Instrument
(01-Mar-23 )
(31-Aug-22 )
Action Redeem Initial
Long Term - AA
Short Term - A1+
Outlook Stable
Rating Watch - -

K-Electric Limited (the "Company") issued an unsecured, privately placed, short-term sukuk K-Electric | PPSTS-6 | PKR 5bln | Apr-22 ("PPSTS-6") of PKR 5,000mln on 27-Apr-22. The purpose of the instrument was to finance the Company's working capital requirement. The tenor of the instrument was 6 months and carried a profit rate of 6MK+70bps. The instrument has been repaid, hence redeemed. The Company has paid in full, all markup and outstanding principal amount. The Sukuk has been redeemed on Oct 27, 2022. Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of K-Electric | PPSTS-6 | PKR 5bln | Apr-22.

About the Entity
K-Electric, a vertically-integrated power utility, has been in operations for more than a century.Total installed capacity of K-Electric is 2,817MW, having an arrangement under a power purchase agreement for 1,650+ MW. At the end-jun22, KES Power Limited (KESP) held 66.4% share in KElectric, while Government of Pakistan owned 24.4%. KES Power has entered into a share purchase agreement with Shanghai Electric Power Company Limited (SEP) for sale of up to 66.4% shares of K-Electric. The transaction is in process and will close once customary closing conditions and requisite regulatory approvals are obtained. K-Electric has ten member board. Mr.Moonis Alvi, CEO is associated with the company since 2008. He is supported by an experienced team.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.